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REPUBLIC ACT NO. 4726 June 18, 1966

AN ACT TO DEFINE CONDOMINIUM, ESTABLISHRE UIREMENTS FOR ITS CREATION, AND !O"ERN

ITS INCIDENTS.

Sec. 1. The short title of this Act shall be "TheCondominium Act".

Sec. 2. A condominium is an interest in real propertyconsisting of separate interest in a unit in a residential,industrial or commercial building and an undividedinterest in common, directly or indirectly, in the land onwhich it is located and in other common areas of thebuilding. A condominium may include, in addition, aseparate interest in other portions of such real property.Title to the common areas, including the land, or theappurtenant interests in such areas, may be held by acorporation specially formed for the purpose hereinafter!nown as the "condominium corporation" in which theholders of separate interest shall automatically bemembers or shareholders, to the e#clusion of others, inproportion to the appurtenant interest of their respectiveunits in the common areas.

The real right in condominium may be ownership or anyother interest in real property recogni$ed by law, onproperty in the Civil Code and other pertinent laws.

Sec. %. As used in this Act, unless the conte#t otherwisere&uires'

a "Condominium" means a condominium as defined inthe ne#t preceding section.

b "(nit" means a part of the condominium pro)ectintended for any type of independent use or ownership,including one or more rooms or spaces located in one or more floors or part or parts of floors in a building orbuildings and such accessories as may be appendedthereto.

c "*ro)ect" means the entire parcel of real propertydivided or to be divided in condominiums, including allstructures thereon,

d "Common areas" means the entire pro)ect e#ceptingall units separately granted or held or reserved.

e "To divide" real property means to divide theownership thereof or other interest therein by conveyingone or more condominiums therein but less than thewhole thereof.

Sec. +. The provisions of this Act shall apply to propertydivided or to be divided into condominiums only if there

shall be recorded in the egister of -eeds of theprovince or city in which the property lies and dulyannotated in the corresponding certificate of title of theland, if the latter had been patented or registered undereither the and egistration or Cadastral Acts, anenabling or master deed which shall contain, amongothers, the following'

a -escription of the land on which the building orbuildings and improvements are or are to be located/

b -escription of the building or buildings, stating thenumber of stories and basements, the number of unitsand their accessories, if any/

c -escription of the common areas and facilities/

d A statement of the e#act nature of the interestac&uired or to be ac&uired by the purchaser in theseparate units and in the common areas of thecondominium pro)ect. 0here title to or the appurtenantinterests in the common areas is or is to be held by acondominium corporation, a statement to this effect shallbe included/

e Statement of the purposes for which the building orbuildings and each of the units are intended or restrictedas to use/

f A certificate of the registered owner of the property, ifhe is other than those e#ecuting the master deed, aswell as of all registered holders of any lien orencumbrance on the property, that they consent to theregistration of the deed/

g The following plans shall be appended to the deed asintegral parts thereof'

1 A survey plan of the land included in the pro)ect,unless a survey plan of the same property hadpreviously been filed in said office/

2 A diagrammatic floor plan of the building or buildingsin the pro)ect, in sufficient detail to identify each unit, itsrelative location and appro#imate dimensions/

h Any reasonable restriction not contrary to law, moralsor public policy regarding the right of any condominiumowner to alienate or dispose of his condominium.

The enabling or master deed may be amended orrevo!ed upon registration of an instrument e#ecuted bythe registered owner or owners of the property andconsented to by all registered holders of any lien orencumbrance on the land or building or portion thereof.The term "registered owner" shall include the registered

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owners of condominiums in the pro)ect. (ntil registrationof a revocation, the provisions of this Act shall continueto apply to such property.

Sec. . Any transfer or conveyance of a unit or anapartment, office or store or other space therein, shallinclude the transfer or conveyance of the undividedinterests in the common areas or, in a proper case, themembership or shareholdings in the condominiumcorporation' Provided , however , That where the commonareas in the condominium pro)ect are owned by theowners of separate units as co owners thereof, nocondominium unit therein shall be conveyed ortransferred to persons other than 3ilipino citi$ens, orcorporations at least si#ty percent of the capital stoc! ofwhich belong to 3ilipino citi$ens, e#cept in cases ofhereditary succession. 0here the common areas in acondominium pro)ect are held by a corporation, notransfer or conveyance of a unit shall be valid if theconcomitant transfer of the appurtenant membership orstoc!holding in the corporation will cause the alien

interest in such corporation to e#ceed the limits imposedby e#isting laws.

Sec. 4. (nless otherwise e#pressly provided in theenabling or master deed or the declaration ofrestrictions, the incidents of a condominium grant are asfollows'

a The boundary of the unit granted are the interiorsurfaces of the perimeter walls, floors, ceilings, windowsand doors thereof. The following are not part of the unitbearing walls, columns, floors, roofs, foundations and

other common structural elements of the building/lobbies, stairways, hallways, and other areas of commonuse, elevator e&uipment and shafts, central heating,central refrigeration and central air conditioninge&uipment, reservoirs, tan!s, pumps and other centralservices and facilities, pipes, ducts, flues, chutes,conduits, wires and other utility installations, whereverlocated, e#cept the outlets thereof when located withinthe unit.

b There shall pass with the unit, as an appurtenancethereof, an e#clusive easement for the use of the air

space encompassed by the boundaries of the unit as ite#ists at any particular time and as the unit may lawfullybe altered or reconstructed from time to time. Sucheasement shall be automatically terminated in any airspace upon destruction of the unit as to render ituntenantable.

c (nless otherwise, provided, the common areas areheld in common by the holders of units, in e&ual shares,one for each unit.

d A non e#clusive easement for ingress, egress andsupport through the common areas is appurtenant toeach unit and the common areas are sub)ect to sucheasements.

e 5ach condominium owner shall have the e#clusiveright to paint, repaint, tile, wa#, paper or otherwiserefinish and decorate the inner surfaces of the walls,ceilings, floors, windows and doors bounding his ownunit.

f 5ach condominium owner shall have the e#clusiveright to mortgage, pledge or encumber his condominiumand to have the same appraised independently of theother condominiums but any obligation incurred by suchcondominium owner is personal to him.

g 5ach condominium owner has also the absolute rightto sell or dispose of his condominium unless the masterdeed contains a re&uirement that the property be firstoffered to the condominium owners within a reasonableperiod of time before the same is offered to outsideparties/

Sec. 6. 5#cept as provided in the following section, thecommon areas shall remain undivided, and there shallbe no )udicial partition thereof.

Sec. 7. 0here several persons own condominiums in acondominium pro)ect, an action may be brought by oneor more such persons for partition thereof by sale of theentire pro)ect, as if the owners of all of thecondominiums in such pro)ect were co owners of the

entire pro)ect in the same proportion as their interests inthe common areas' Provided , however , That a partitionshall be made only upon a showing'

a That three years after damage or destruction to thepro)ect which renders material part thereof unit for itsuse prior thereto, the pro)ect has not been rebuilt orrepaired substantially to its state prior to its damage ordestruction, or

b That damage or destruction to the pro)ect hasrendered one half or more of the units therein

untenantable and that condominium owners holding inaggregate more than thirty percent interest in thecommon areas are opposed to repair or restoration ofthe pro)ect/ or

c That the pro)ect has been in e#istence in e#cess offifty years, that it is obsolete and uneconomic, and thatcondominium owners holding in aggregate more thanfifty percent interest in the common areas are opposedto repair or restoration or remodeling or moderni$ing ofthe pro)ect/ or

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d That the pro)ect or a material part thereof has beencondemned or e#propriated and that the pro)ect is nolonger viable, or that the condominium owners holding inaggregate more than seventy percent interest in thecommon areas are opposed to continuation of thecondominium regime after e#propriation orcondemnation of a material portion thereof/ or

e That the conditions for such partition by sale set forthin the declaration of restrictions, duly registered inaccordance with the terms of this Act, have been met.

Sec. 8. The owner of a pro)ect shall, prior to theconveyance of any condominium therein, register adeclaration of restrictions relating to such pro)ect, whichrestrictions shall constitute a lien upon eachcondominium in the pro)ect, and shall insure to and bindall condominium owners in the pro)ect. Such liens,unless otherwise provided, may be enforced by anycondominium owner in the pro)ect or by themanagement body of such pro)ect. The egister of

-eeds shall enter and annotate the declaration ofrestrictions upon the certificate of title covering the landincluded within the pro)ect, if the land is patented orregistered under the and egistration or Cadastral

Acts.

The declaration of restrictions shall provide for themanagement of the pro)ect by anyone of the followingmanagement bodies' a condominium corporation, anassociation of the condominium owners, a board ofgovernors elected by condominium owners, or amanagement agent elected by the owners or by the

board named in the declaration. 9t shall also provide forvoting ma)orities &uorums, notices, meeting date, andother rules governing such body or bodies.

Such declaration of restrictions, among other things,may also provide'

a As to any such management body/

1 3or the powers thereof, including power to enforcethe provisions of the declarations of restrictions/

2 3or maintenance of insurance policies, insuringcondominium owners against loss by fire, casualty,liability, wor!men:s compensation and other insurableris!s, and for bonding of the members of anymanagement body/

% *rovisions for maintenance, utility, gardening andother services benefiting the common areas, for theemployment of personnel necessary for the operation ofthe building, and legal, accounting and otherprofessional and technical services/

+ 3or purchase of materials, supplies and the li!eneeded by the common areas/

3or payment of ta#es and special assessments whichwould be a lien upon the entire pro)ect or commonareas, and for discharge of any lien or encumbrancelevied against the entire pro)ect or the common areas/

4 3or reconstruction of any portion or portions of anydamage to or destruction of the pro)ect/

6 The manner for delegation of its powers/

7 3or entry by its officers and agents into any unit whennecessary in connection with the maintenance orconstruction for which such body is responsible/

8 3or a power of attorney to the management body tosell the entire pro)ect for the benefit of all of the ownersthereof when partition of the pro)ect may be authori$edunder Section 7 of this Act, which said power shall bebinding upon all of the condominium owners regardlessof whether they assume the obligations of therestrictions or not.

b The manner and procedure for amending suchrestrictions' Provided , That the vote of not less than ama)ority in interest of the owners is obtained.

c 3or independent audit of the accounts of themanagement body/

d 3or reasonable assessments to meet authori$ede#penditures, each condominium unit to be assessedseparately for its share of such e#penses in proportion

unless otherwise provided to its owners fractionalinterest in any common areas/

e 3or the subordination of the liens securing suchassessments to other liens either generally orspecifically described/

f 3or conditions, other than those provided for inSections eight and thirteen of this Act, upon whichpartition of the pro)ect and dissolution of thecondominium corporation may be made. Such right topartition or dissolution may be conditioned upon failureof the condominium owners to rebuild within a certainperiod or upon specified inade&uacy of insuranceproceeds, or upon specified percentage of damage tothe building, or upon a decision of an arbitrator, or uponany other reasonable condition.

Sec. 1;. 0henever the common areas in a condominiumpro)ect are held by a condominium corporation, suchcorporation shall constitute the management body of the

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pro)ect. The corporate purposes of such a corporationshall be limited to the holding of the common areas,either in ownership or any other interest in real propertyrecogni$ed by law, to the management of the pro)ect,and to such other purposes as may be necessary,incidental or convenient to the accomplishment of saidpurposes. The articles of incorporation or by laws of thecorporation shall not contain any provision contrary to orinconsistent with the provisions of this Act, the enabling

or master deed, or the declaration of restrictions of thepro)ect.

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shall not be entitled to demand payment of his shares orinterest in those cases where such right is granted under the Corporation aw unless he consents to sell hisseparate interest in the pro)ect to the corporation or toany purchaser of the corporation:s choice who shall alsobuy from the corporation the dissenting member orstoc!holder:s interest. 9n case of disagreement as toprice, the procedure set forth in the appropriate provisionof the Corporation aw for valuation of shares shall be

followed. The corporation shall have two years withinwhich to pay for the shares or furnish a purchaser of itschoice from the time of award. All e#penses incurred inthe li&uidation of the interest of the dissenting member or stoc!holder shall be borne by him.

Sec. 17. (pon registration of an instrument conveying acondominium, the egister of -eeds shall, uponpayment of the proper fees, enter and annotate theconveyance on the certificate of title covering the landincluded within the pro)ect and the transferee shall beentitled to the issuance of a "condominium owner:s" copy

of the pertinent portion of such certificate of title. Said"condominium owner:s" copy need not reproduce theownership status or series of transactions in force orannotated with respect to other condominiums in thepro)ect. A copy of the description of the land, a briefdescription of the condominium conveyed, name andpersonal circumstances of the condominium ownerwould be sufficient for purposes of the "condominiumowner:s" copy of the certificate of title. =o conveyance of condominiums or part thereof, subse&uent to the originalconveyance thereof from the owner of the pro)ect, shallbe registered unless accompanied by a certificate of themanagement body of the pro)ect that such conveyanceis in accordance with the provisions of the declaration ofrestrictions of such pro)ect.

9n cases of condominium pro)ects registered under theprovisions of the Spanish

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such materials or services. Such e#press consent shallbe deemed to have been given by the owner of anycondominium in the case of emergency repairs of hiscondominium unit. abor performed or services ormaterials furnished for the common areas, if dulyauthori$ed by the management body provided for in adeclaration of restrictions governing the property, shallbe deemed to be performed or furnished with thee#press consent of each condominium owner. The

owner of any condominium may remove hiscondominium from a lien against two or morecondominiums or any part thereof by payment to theholder of the lien of the fraction of the total sum securedby such lien which is attributable to his condominiumunit.

Sec. 22. (nless otherwise provided for by thedeclaration of restrictions, the management body,provided for herein, may ac&uire and hold, for the benefitof the condominium owners, tangible and intangiblepersonal property and may dispose of the same by sale

or otherwise/ and the beneficial interest in such personalproperty shall be owned by the condominium owners inthe same proportion as their respective interests in thecommon areas. A transfer of a condominium shalltransfer to the transferee ownership of the transferor:sbeneficial interest in such personal property.

Sec. 2%. 0here, in an action for partition of acondominium pro)ect or for the dissolution ofcondominium corporation on the ground that the pro)ector a material part thereof has been condemned ore#propriated, the Court finds that the conditions provided

for in this Act or in the declaration of restrictions have notbeen met, the Court may decree a reorgani$ation of thepro)ect, declaring which portion or portions of the pro)ectshall continue as a condominium pro)ect, the ownersthereof, and the respective rights of said remainingowners and the )ust compensation, if any, that acondominium owner may be entitled to due todeprivation of his property. (pon receipt of a copy of thedecree, the egister of -eeds shall enter and annotate

the same on the pertinent certificate of title.

Sec. 2+. Any deed, declaration or plan for acondominium pro)ect shall be liberally construed tofacilitate the operation of the pro)ect, and its provisionsshall be presumed to be independent and severable.

Sec. 2 . 0henever real property has been divided intocondominiums, each condominium separately ownedshall be separately assessed, for purposes of realproperty ta#ation and other ta# purposes to the ownersthereof and the ta# on each such condominium shall

constitute a lien solely thereon.

Sec. 24. All Acts or parts of Acts in conflict orinconsistent with this Act are hereby amended insofar ascondominium and its incidents are concerned.

Sec. 26. This Act shall ta!e effect upon its approval.

Approved' >une 17, 1844